Why do you need a forex trading plan?

[goalkeeper]

Its important to learn how not to lose first. Then how to win,And planning is of course first thing to do.

 

[Aialocon]

It's nice that everyone here agrees with the fact that a trading plan is a crucial part of a successful trading experience. However, none of you has ever even given an example of a trading plan and explain what is exactly meant by a trading plan. Say I am a beginner in trading and I see this thread so I would expect to get some sort of an understanding 🙂 develop your ideas people

 

[Enivid]

OK, here is my trading plan for a large share of trades I make based on technical analysis:
1. Scan H4, D1, W1 charts of the major and minor currency pairs.
2. Find chart patterns like channels, triangles, double tops/bottoms, head-and-shoulders, etc.
3. Market them up, finding the pattern's height and placing entry/TP triggers based on that.
4. Set up an automated EA to trade breakouts of those patterns based on the placed entry/TP. Setup includes setting position size to risk no more than 1% of the account balance on a failed trade.
5. Wait for the trigger.
6. If trade fails - analyze what went wrong if anything. Record everything into a trade journal.

 

[Aialocon]

thank you for the nice example of a trading plan. however, I believe for beginners, EA is not the best idea. these could be used later on when the trader gathers a good bulk of knowledge in trading.

 

[markiva]

It is good to have a trading plan in forex because some times your emotion might affect on your trading decision when trading and with a trading plan you have total control of your trades. It is very vital for every trader to have a plan.

 

[fxapex]

Its important to learn how not to lose first. Then how to win,And planning is of course first thing to do.

Yes its the first thing a trader should do, planning will help you to place your trades in the right time and make decisions quickly.

 

[koyl]

A trading plan is good because it makes you to be well organized and it gives you rules to follow. It also help you in planning your trades and keeping it for historical records.

 

[Aialocon]

if you are emotional and you allow your emotions control your actions, then no plan will help you. emotions will affect you and may decide that the plan you had is not good enough and start making changes and most probably mistakes

 

[Jesse.muller]

What I'm wondering, if everybody has a trading plan, do you change the plan often, or do you stick with it if you encounter some bad trades?
A good example is if you're trading trends, but the market goes in a ranging market do you switch your strategy or just keep your profits smaller in the ranging market conditions?

 

[Aialocon]

It is normal to make changes in the trading plan according to the market behaviour, you can not use the same plan all the time

 

[Artur]

I have only trading journal, and work without plan. But actually i dont trade on regular bases